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Wednesday's recovery off its early Europe.....>

MNI (London)
CABLE: Wednesday's recovery off its early Europe low of $1.2427 managed to touch
$1.2522 in a move seen mainly driven by the sell off in EUR/GBP, the cross
reacting to the general pressure on the EUR as traders adjust positions ahead of
today's ECB announcement. The cross broke support at Gbp0.8950 before touching a
low of Gbp0.8906 before it settled between Gbp0.8920-30.
Cable struggled to hold gains and drifted back to $1.2475, closing the day
around $1.2480. Early Asia saw rate consolidated between $1.2480-87, slipped to
$1.2472 ahead of the European open but has found fresh demand which is currently
keeping it buoyed between $1.2475/85.
- UK CBI Retail Sales data due at 1000GMT though will be overshadowed by the ECB
announcement at 1145GMT. ECB Draghi press conference at 1230GMT expected to
provide signals for a possible rate cut at the Sep meeting(some suggest that
could come today - 10bps suggested). US Weekly Jobless Claims and Durable Goods
data will be released just before Draghi begins speaking).
- Cable support $1.2472, $1.2460-50 ahead of $1.2427 and $1.2418. Resistance
$1.2522, $1.2539(line off May6 high)    
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |

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